(July 24, 2021) Mercedes-Benz is getting ready to go all electric by the end of the decade, where market conditions allow. Shifting from electric-first to electric-only, the luxury car company is accelerating toward an emissions-free and software-driven future. By 2022, Mercedes-Benz will have battery electric vehicles (BEV) in all segments the company serves.
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From 2025 onwards, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes. Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets.

"The EV shift is picking up speed - especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade," said Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG. "This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era."

To facilitate this shift, Mercedes-Benz is unveiling a comprehensive plan which includes significantly accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will amount to over €40 billion. Accelerating and advancing the EV portfolio plan will bring forward the tipping point for EV adoption.

Architectures: In 2025 Mercedes-Benz will launch three electric-only architectures:

    •    MB.EA will cover all medium to large size passenger cars, establishing a scalable modular system as the electric backbone for the future EV portfolio.

    •    AMG.EA will be a dedicated performance electric vehicle platform addressing technology and performance oriented Mercedes-AMG customers.

    •    VAN.EA ushers in a new era for purpose made electric vans and Light Commercial Vehicles, which will contribute to emission free transportation and cities in the future.

Vertical integration: After reorganizing its powertrain activities to put planning, development, purchasing and production under one roof, Mercedes-Benz will deepen the level of vertical integration in manufacturing and development, and insource electric drive technology. This step includes the acquisition of UK based electric motor company YASA. With this deal, Mercedes-Benz gains access to unique axial flux motor technology and expertise to develop next generation ultra-high performance motors.

In-house electric motors, such as the eATS 2.0, are a key part of the strategy with a clear focus on efficiency and the overall cost of the entire system, including inverters and software. China, the world's largest new energy vehicle (NEV) market, which is home to hundreds of companies and suppliers specialized in EV components and software technologies, is expected to play a key role in accelerating the Mercedes-Benz electrification strategy.

Batteries: Mercedes-Benz will need a battery capacity of more than 200 Gigawatt hours and plans to set up eight Gigafactories for producing cells, together with its partners around the world. This is in addition to the already planned network of nine plants dedicated to building battery systems. Next generation batteries will be highly standardized and suitable for use in more than 90% of all Mercedes-Benz cars and vans while being flexible enough to offer individual solutions to all customers.

With regard to cell manufacturing, Mercedes- Benz intends to team up with new European partners to develop and efficiently produce future cells and modules, a step which ensures that Europe remains at the heart of the auto industry even in an electric era. Cell production will give Mercedes-Benz the opportunity to transform its established powertrain production network. By continuously integrating the most advanced battery cell technology in cars and vans, Mercedes- Benz aims to increase range during the production lifecycle of a model.

With the next battery generation, Mercedes-Benz will work with partners like SilaNano to further increase energy density by using silicon- carbon composite in the anode. This will allow for unprecedented range and even shorter charging times. When it comes to solid-state technology, Mercedes-Benz is in talks with partners to develop batteries with even higher energy density and safety.

Charging: Mercedes-Benz is also working on setting new standards in charging: "Plug & Charge" will allow customers to plug-in, charge and unplug without extra steps needed for authentication and payment processing. Plug & Charge will go live with the market launch of the EQS later this year. Mercedes me Charge is already one of the world's largest charging networks and currently comprises more than 530,000 AC and DC charging points worldwide.

Furthermore, Mercedes-Benz is working with Shell on expanding the charging network. Customers will get enhanced access to Shell's Recharge network consisting of over 30,000 charge points by 2025 in Europe, China, and North America – including over 10,000 high-power chargers globally. Mercedes-Benz is also planning to launch several premium-charging sites in Europe, which will offer a bespoke charging experience with top-notch facilities.